IC substrate maker Kinsus Interconnect Technology has disclosed it has acquired a plant and related facilities from the bankrupt Chunghwa Picture Tubes (CPT) at NT$1.5 billion (US$50.8 million).
Kinsus is expected to use the factory to expand production capacity mainly for ABF substrates, which have been in short supply amid fast growing demand.
By adjusting production equipment for ABF substrates and investing NT$1 billion to expand production capacity, Kinsus’ monthly production capacity has increased to 12 million ABF substrates. The company plans to further expand the monthly production capacity to 16 million substrates in 2021.
While Xilinx used to be the largest client for ABF substrates for FPGA packaging, Kinsus has obtained orders for ABF substrates from additional clients including Broadcom and Nvidia, according to industry sources.
Kinsus has a global market share of about 6% for ABF substrates currently, and 30-40% of its ABF substrates are used in packaging ICs for PCs, servers and networking/communication equipment, the sources said. Digi Times